OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has placed under review with positive implications the Financial Strength Rating (FSR) of A- (Excellent) and Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” of Dealers Assurance Company (DAC) (Columbus, OH).
The company is being placed under review after the proposed acquisition by Industrial Alliance Insurance and Financial Services Inc. (Industrial Alliance) for $135 million in cash that was announced on Sept. 21, 2017. The acquirer is a public Canadian entity providing life & health insurance and warranty products throughout Canada. While Industrial Alliance maintains life & health operations in the United States, the acquisition of DAC will mark Industrial Alliance’s introduction to the U.S. warranty space. A.M. Best expects DAC to recognize long-term benefits through Industrial Alliance’s 125 years of insurance industry knowledge and expertise, additional capital support, expanded market opportunities and Industrial Alliance’s stated desire to further expand into the United States, utilizing DAC’s industry expertise and infrastructure.
The transaction is expected to close later in the fourth quarter of 2017, pending regulatory approval. The ratings of DAC will remain under review until the close of the transaction, and until A.M. Best completes its analysis of the transaction.
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